Saving tips for woman
“You must gain control over your money, or the lack of it will forever control you.” – Dave Ramsey
Saving tips for women: get started in Women’s Month and build a lifetime of security
Not too long ago, men were out earning the family’s income while women exclusively stayed at home and looked after the house and kids. Times have changed. Today many women are career professionals and leaders while also being mothers, and the cost of living has meant households with two or more working adults is the norm. Furthermore, single parents have the dual responsibility of earning an income and raising children.
Women are by nature nurturing and often think with their hearts, putting the wellbeing of their families first. Homemakers, and known for their support and love, women are also vital to the sustainability of families and need to think strategically as they play crucial roles in the finances of most households, often driving the daily and monthly spending decisions.
Kirsten Reynolds-Wood, Brand and Marketing Executive for online lender, GetBucks a leading responsible lender of credit in South Africa says that there are proven strategies for building a savings culture, and that women who implement these strategic habits will go a long way towards building security and wealth in the long term, which will benefit not only them, but also their families.
1. Beware the rainy day: build an emergency fund
You build an emergency fund by putting away a portion of your earnings every month and set it aside in case of an emergency. You do not have to wait until you feel you have a bigger salary. In fact, you mustn’t wait. You can start by saving small, as the small amounts add up and come in handy on a rainy day.
2. Time flies: start saving for retirement as early as possible.
Women are likely to live longer than men and this means they need to have enough money for a longer period of time after retiring. The earlier you start saving for retirement, the more you will be able to add over time to your retirement savings. The benefits of starting to save for retirement from an early age include being able to support yourself during retirement and maintaining a standard of living you are used to.
3. Beep beep: look forward to the automatic payment SMS
Go to the bank today and set up an automatic transfer from your bank account into a savings or investment account. Set it up so that it goes off right after you are paid. After this is done, your spending money and savings money will never mix and you can go about your month without worrying. Then, when you get the message alert every month, you can smile knowing you are building up your savings.
4. Failing to plan is planning to fail: draw up a budget
A budget is vital if you want to get into the habit of saving. Knowing what you earn and what you spend every month not only gives you peace of mind, but it allows you to plan. Being short near the end of the month is one of the main reasons people dip into their savings to make ends meet, or worse, don’t save at all.
5. Take the pain, enjoy the gain: save extra money like refunds and bonuses
When SARS refunds you at the end of the tax season, or you get an unexpected refund or rebate, avoid running out to buy the latest flashy shoes. The same applies to thirteenth cheques and bonuses. Try and keep your December shopping and entertainment within your monthly budget, and save the extra money. This will have a very positive effect on the overall balance of your savings and motivate you to save even more.
6. Timeout: take a breather for 48 hours
We all know the feeling: you need something and you need it now. But before you go to the shop or order online, make a promise to yourself right here, right now: whenever you decide you need or want something badly, enact the 48-hour rule. Take a breather and wait two days. Allow your mind to think over a purchase and whether or not you really want to spend that money.
7. Set goals, then score: short-term savings plans
Do you have short-term goals? The following tips will release more money to save for short-term or long-term goals.
• Lower your expenses. Instead of spending on takeaways or the office canteen, pack your own lunch and this will save you a lot of money over time
• Stop smoking and drink less. A R30 box of cigarettes a day equals R10,080 spent in one year. What could you do with that money?
• Eat out less, socialise at places where you don’t have to buy food or drinks,
• Buy in bulk, it all adds up.
8. The big picture: our habits define us
Keep your eye on the big picture. Whenever you decide to spend money on something, ask if it will improve or hinder your goals for the life you want to live. It doesn’t mean that you shouldn’t have a nice night out or buy a special gift now and then, it just means that in the greater scheme of things, am I building the kinds of habits that will build or destroy my dream?
9. Pay your debts and watch your credit score
Check your credit score and pay all your debts. A clean credit record will help you get the best interest rates and you will pay less interest on credit cards and loans. GetBucks offers customised credit reports where you can get access to information from the local credit bureaus, it provides continuous feedback on credit score movement, gives tips on how to improve a personal credit score and provides education based on spending habits.
10. Invest: building wealth over a lifetime
Building a savings culture means that you are more likely to stick to the single-most important thing you can do for your retirement and long-term wealth: investing. Make sure to visit a financial advisor. This is a professional who will help you manage and invest your finances so that you can reach your long-term goals and build up your wealth.
11. Control your finances or they will control you
Financial freedom will come to the woman who actively controls her finances. Be in control of your money and it will never control you.
About GetBucks MyBucks
GetBucks forms part of Frankfurt-listed FinTech, MyBucks S.A. (WKN: A2AJLT, ISIN: LU1404975507, Ticker Symbol: MBC:GR). MyBucks delivers seamless financial services through technology. Through its brands GetBucks and GetSure the company offers impact loans, unsecured consumer loans, banking solutions as well as insurance products to customers. MyBucks has experienced exponential growth since its inception in 2011 and today has operations in twelve African and two European countries as well as in Australia. MyBucks aims to ensure that its product offering is accessible, simple and trustworthy, in comparison to traditional, non-technological methods, ultimately working towards enhancing the benefits to the customer. The MyBucks’ product offering enables customers to manage their financial affairs easily and conveniently. Discover more at http://MyBucks.com